If Smith Believes the Economy Is Self-Regulating,then Smith

question 135

Multiple Choice

If Smith believes the economy is self-regulating,then Smith

• A) is less likely to advocate expansionary fiscal policy when the economy is in a recessionary gap than Jones,who believes the economy is not self-regulating.
• B) is more likely to advocate expansionary fiscal policy when the economy is in a recessionary gap than Jones,who believes the economy is not self-regulating.
• C) will believe that there is zero crowding out,too.
• D) will believe that wages are inflexible downward,too.
• E) b and d

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Definitions:

Diagnosing

The process of identifying a disease or condition from its symptoms and signs through examination and testing.

Mental Disorders

A wide range of conditions that affect mood, thinking, and behavior, often requiring clinical diagnosis and treatment.

Psychoanalysis

A psychological theory and therapeutic method developed by Sigmund Freud that explores unconscious motivations and conflicts as they manifest in behaviors and mental disorders.

Id

In psychoanalytic theory, the part of the mind in which innate instinctive impulses and primary processes are manifest.